Ola acquires mobile payment startup Qarth to strengthen Ola Money

Chennai-based Qarth had developed a multi-bank IMPS application that facilitates mobile payments to any IMPS enabled bank account across India.ETtech | March 22, 2016, 10:27 IST

India's largest cab aggregator Ola has acquired mobile payment startup Qarth to strengthen its mobile wallet business Ola Money, reports TechCrunch. The deal terms or the acquisition size were not disclosed.

The company claims to have tie-ups with 26 banks to enable customers of those banks make 'one-touch' mobile payments or money transfers. It was incubated in IIT Madras' rural technology and business incubator.

Ola told the publication that the app will continue to exist and its technology will also be integrated into Ola Money to provide a similar functionality to its users. The entire Qarth team including co-founders Abhinav Srivastava and Prerit Srivastava will however join Ola Money.

Ola CFO Rajiv Bansal had earlier told in an interview with ET that cab aggregation and wallet business will be its critical focus. Rushil Goel, who was heading strategy and Ola Money, however quit the company earlier this year.

Ola had opened up its mobile wallet Ola Money in August last year to enable customers use their wallet balance to pay for third party merchants like OYO Rooms, Lenskart, Saavn and Zopper. The company had partnered with Zipcash to offer this service, since the latter has a semi-closed wallet license that is needed for third party payment services.

Ola also launched a dedicated app for Ola Money in November last year, adding new features like mobile recharges and money transfers, and hence competing with the likes of Paytm, Freecharge and Mobikwik.